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2017 Employment Insurance (EI) Maximum Insurable Earnings

| February 1, 2017

The Canada Revenue Agency announced the maximum insurable earnings  and Employment Insurance (EI) premiums for 2017 on September 14, 2016. The rate has been decreased to 1.63%  for employees, and 2.282% (1.4 times of 1.63%) for employers. Contributors who earn more than $51,300 in 2017 are not required or permitted to make additional contributions to EI.  The reduction in premium rate will save approximately a maximum of $119.21 in 2017 for an employee.

Below is the comparison:

  2017 2016 2015 2014 2013 2012
Maximum Insurable Earnings $51,300 $50,800 $49,500 $48,600 $47,400 $45,900
Basic Exemption Nil Nil Nil Nil Nil Nil

EMPLOYER CONTRIBUTION

Maximum employer contribution $1,170.67 $1,337.06 $1,302.84 $1,279.15 $1,247.57 $1,175.96
Contribution rate 2.282% 2.632% 2.632% 2.632% 2.632% 2.562%

EMPLOYEE CONTRIBUTION

Maximum employee contribution $836.19 $955.40 $930.60 $913.68 $891.12 $839.97
Contribution rate 1.63% 1.88% 1.88% 1.88% 1.88% 1.83%

Please note that this applies to each job.  For example,  during the year, if you switch employers, each employer will deduct the EI premium without considering the amount of EI premiums paid with the previous employer.  The employee will receive the refund of any over-payments when income tax and benefit return is filed with the Canada Revenue Agency.

(This posting is for personal educational purposes only.  Please consult your tax advisor for your specific situation).

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